Weaker Dollar Boosts Gold Prices by Nearly 5% on Weekly Basis
Gold prices surged nearly 5% on a weekly basis, supported by a weaker US dollar and reduced expectations of an imminent Federal Reserve rate hike. The yellow metal stood at Rs 1,62,440 per kg, while silver futures for September advanced 1.28%, reaching Rs 2,46,360 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,58,860 on Friday, up from Rs 1,54,066 seen on Monday at market opening. Analysts attributed the gains to softer US inflation, weaker retail activity, and subdued consumer sentiment, which tempered expectations of near-term monetary tightening.
A US Treasury announcement that it would double its long-dated bond buybacks pushed long yields of bonds lower, contributing to a supportive backdrop for gold and silver. The precious metals also benefited from a second consecutive weekly gain in crude oil over lingering tensions in West Asia.